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PMI PfMP Exam - Topic 6 Question 105 Discussion

Working to manage portfolio value is a continuous task. In doing so, as the portfolio manager, you review the monthly and any ad hoc reports submitted by component managers. This month you saw there was an excellent opportunity for major cost savings in two components in the top five on the portfolio list; however, to realize this cost reduction, these components require resources to be reallocated from other components in progress for six months. These forecasts then:
D) Are recommended for consideration by the Portfolio Review Board
A) Should be verified by independent estimators for accuracy
B) Require validation by the CFO and his staff
C) Should be accompanied by an analysis of earned value data to ensure the components are using the same method of reporting

PMI PfMP Exam - Topic 6 Question 105 Discussion

Actual exam question for PMI's PfMP exam
Question #: 105
Topic #: 6
[All PfMP Questions]

Working to manage portfolio value is a continuous task. In doing so, as the portfolio manager, you review the monthly and any ad hoc reports submitted by component managers. This month you saw there was an excellent opportunity for major cost savings in two components in the top five on the portfolio list; however, to realize this cost reduction, these components require resources to be reallocated from other components in progress for six months. These forecasts then:

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Suggested Answer: D

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I feel like the Portfolio Review Board should definitely be involved, but I can't recall if they need to see all forecasts or just the ones with significant changes.
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Graham
5 days ago
This reminds me of a practice question where we had to analyze earned value data. I think option C makes a lot of sense here.
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Stephaine
10 days ago
I remember we discussed the importance of validating forecasts, but I'm not sure if it should be the CFO or independent estimators who do that.
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